Saudi Arabia Telecom Market by End-user, Type and Application - Forecast and Analysis 2024-2028

Saudi Arabia Telecom Market Forecast 2024-2028 

The Saudi Arabia Telecom Market size is forecast to increase by USD 3.06 billion, at a CAGR of 3.15% between 2023 and 2028. The market's growth trajectory is influenced by several key factors. Firstly, there is a notable rise in broadband demand, driven by the increasing reliance on high-speed internet connectivity for various applications and services. Secondly, global mobile data traffic is experiencing a significant surge, propelled by the growing use of smartphones and other connected devices. Lastly, substantial investments are being directed towards smart city projects, indicating a shift towards more efficient and technology-driven urban infrastructure. These factors collectively contribute to the expansion of the market, highlighting the importance of advanced telecommunications and digital infrastructure in modern societies.

Moreover, the market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 10 market companies, including Etihad Etisalat Co., Orange SA, Proximus Group, Saudi Telecom Co., Telefonaktiebolaget LM Ericsson, Teleperformance SE, Vodafone Group Plc, and Zain Group. Additionally, Huawei Technologies Co. Ltd offers offers telecom solutions such as Enterprise Networking which includes switches, routers, and wireless access points, Optical Networking which includes OLTs, ONUs, and ONTs for fiber-the-home deployments, Data Center Interconnect, 5G solutions, Content Delivery Network and Optical Character Recognition for efficient telecom service handling.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics 

The market is driven by the rapid expansion of 5G infrastructures and the increasing adoption of smartphone devices. Key trends include the emergence of Mobile Virtual Network Operators (MNVO), advancements in Artificial Intelligence (AI) and Robotics, and the development of high-speed data connectivity. Challenges such as ensuring robust wired infrastructure, managing Customer inclination towards newer technologies, and addressing regulatory issues related to White Space Spectrum allocation are critical for sustaining growth in the sector. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market  Driver

Increased demand for broadband is notably driving the market. The increasing use of the Internet has generated a significant demand for high-speed broadband connections. In addition, this has compelled telecommunications companies to upgrade their network infrastructure to support faster speeds and larger bandwidths. Furthermore, as the world becomes more connected, the demand for telecom services is also rising rapidly in Saudi Arabia.

Moreover, people and businesses require fast and reliable connectivity to communicate with one another, access information and services, and carry out their daily activities. In addition, mobile devices, such as smartphones and tablets, are now used by billions of people in Saudi Arabia. Furthermore, this has resulted in a significant increase in the demand for mobile data services like internet access and messaging. Hence, such factors are driving the market during the forecast period.

Significant Market Trends

Growing investment in the development and commercialization of the 5G network is an emerging trend in the market. The 5G network is the new mobile wireless technology, which is an upscaled version of the previous 4G network. In addition, this technology enhances download speeds, faster data transmission with minimal latency, and improves response times. Furthermore, various enterprises from different countries such as South Korea, the US, and China, are investing in this technology in the country, as it will help them to gain a competitive advantage over their rivals.

Moreover, in September 2023, Zain KSA announced the developments of the 5G-advanced network in collaboration with Huawei at the 5.5G City Summit held in Riyadh, Saudia Arabia. In addition, the collaboration will help both companies to start working on the 5.5G City Innovation Project, which unlocks the transformative evolution of beyond 5 G technologies. Hence, such factors are driving the market during the forecast period.

Major Market Restrain

The rise in network attacks and online security threats is a major challenge hindering the market. As the country's digitization and reliance on telecommunications infrastructure rises, the potential impact of cyber threats increases. In addition, security breaches can erode consumer confidence in telecom services. Furthermore, with the growing importance of online transactions, e-commerce, and digital communication, consumers are becoming more concerned about data security.

Moreover, high-profile cyberattacks or data breaches can cause a loss of trust in telecom network security, making it difficult to adopt new services and technologies. In addition, network attacks can disrupt critical services and communication channels, negatively affecting both business and government operations. In addition, downtime, data loss, and compromised communication channels can have serious economic consequences. Hence, such factors are hindering the market during the forecast period.

Market Segmentation 

The market is witnessing a transformative phase with the rapid adoption of advanced technologies and the evolution of infrastructure. Key players in the sector, including Mobile Virtual Network Operators (MNVO) and telephone service providers, are focusing on leveraging 5G networks and White Space Spectrum to meet the growing demands of consumers and businesses. With a thriving smartphone market and a high number of installed devices, Saudi Arabia's telecom sector contributes significantly to the country's Gross Domestic Product (GDP). Organizations such as the GSM Association (GSMA) and Boston Consulting Group (BCG) play pivotal roles in shaping the industry's strategies and initiatives. The influx of Foreign Direct Investment (FDI) is driving innovations in the Internet of Things (IoT), Artificial Intelligence (AI), and Robotics, enhancing the value-added managed services and high-speed data connectivity offered to users. The development of 5G infrastructures and the proliferation of smartphone devices are further amplifying the global communication network and improving voice and visual signals across the kingdom's wired infrastructure.

By End-user

The consumer segment is estimated to witness significant growth during the forecast period. The consumer segment has emerged as the market leader in the telecom market in Saudi Arabia, changing how people access information and communicate. In addition, the widespread use of smartphones has contributed significantly to the rapid growth of telecom services in the country. For instance, in 2023, there were approximately 37.93 million internet users in Saudi Arabia, with internet penetration at 99.1 percent.

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The consumer segment was the largest segment and was valued at USD 9.91 billion in 2018. Moreover, in January 2023, Saudi Arabia had an estimated 70 million social media users, accounting for 71 percent of the total population. In addition, the consumer segment of the telecom market in Saudi Arabia is positioned for continued growth as remote work, online education, and smart home technologies gain traction, fueled by increased infrastructure investment and digital inclusion efforts. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Market Segmentation By Type

The proliferation of mobile devices will fuel the wireless segment which in turn will increase the market. Cloud computing technologies, artificial intelligence, and the Internet of Things (IoT) are thought to have played a major role in the expansion of wireless communication channels in Saudi Arabia. In addition, wireless local area network (WLAN) systems have been rapidly deployed over the years, allowing cellular devices in private homes, public areas, airports, office buildings, cafeterias, and other locations to connect to the Internet. In addition, the country has also been participating in a large telephone expansion project, which has been tasked with extending both fixed telephone lines and the global standard for mobile phone lines. Furthermore,  the proliferation of mobile devices and the growing reliance on digital communication in everyday life is fuelling the growth of this segment which in turn drives the market during the forecast period.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.

Global Market Customer Landscape

Market Companies

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Nokia Corp: The company offers telecom services includes cellular networks, FTK civil services, OSP civil and telecom works, switching and transmission systems, microwave systems and others

Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.

• End-user Outlook
  • Consumer
  • Business
• Type Outlook
  • Wireless
  • Wireline
• Application Outlook
  • Residential
  • Commercial

Market Analyst Overview

The market is experiencing a dynamic transformation fueled by various factors. With the rise of 5G technology, the country is witnessing a surge in 5G connections and investments in 5G infrastructures. This has led to a significant increase in mobile subscribers and the adoption of smartphone devices with high-speed data connectivity. The government's initiatives, such as the Union Budget 2023 and efforts to enhance broadband connectivity in villages through fabrication of towers, are driving the expansion of the sector. Investments in 5G networks by major players like Verizon Communications and the utilization of Millimeter wave (mmWave) spectrum are shaping the future of telecom in Saudi Arabia. The sector's evolution is also marked by the deployment of wireless densification strategies, wireline networks, and the adoption of Machine-to-machine services for enhanced connectivity and network performance.

Moreover, the market is characterized by a competitive landscape with Mobile Virtual Network Operators (MVNO) and established telephone service providers offering a range of services. The demand for value-added managed services and smartphone display and sound quality is shaping consumer preferences, leading to the growth of digital entertainment platforms and cloud gaming. Moreover, the increasing use of Internet of Things (IoT) devices across sectors like healthcare, manufacturing, energy, and utilities is driving the need for robust wireless networks and wireline communication infrastructure. Investments in 5G small cell networks, Private LTE and 5G networks, and VoIP services are further propelling the market's evolution in Saudi Arabia.

Furthermore, the market is a vital component of the country's economic infrastructure. With the advent of 5G networks and advancements in cloud-computing technologies, the telecom sector is experiencing rapid growth. The market is characterized by a diverse range of players, including Mobile Virtual Network Operators (MNVO) and private telecom operators. Saudi Arabia's telecom landscape is witnessing a surge in smartphone users and mobile voice traffic, driven by factors such as super-fast Internet Protocol (IP) networks and high-speed broadband services. This growth is further fueled by the increasing demand for ultra-high-definition videos, online gaming, and business applications among consumers and enterprises.

Market Scope
Report Coverage	Details
Page number	130
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 3.15%
Market Growth 2024-2028	USD 3.06 billion
Market structure	Concentrated
YoY growth 2023-2024(%)	2.53
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Etihad Etisalat Co., Huawei Technologies Co. Ltd., Nokia Corp., Orange SA, Proximus Group, Saudi Telecom Co., Telefonaktiebolaget LM Ericsson, Teleperformance SE, Vodafone Group Plc, and Zain Group
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2023 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Saudi Arabia
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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